Oxidation resistant coatings are needed for components which operate in the high temperature section of gas turbine engines and other types of turbomachinery. Typical of such coatings are the diffusion aluminide coatings such as those described in commonly assigned U.S. Pat. Nos. 3,544,348 to Boone et al and 4,132,816 to Benden et al. Another type of such oxidation resistant coatings are generally referred to as MCrAlY overlay coatings, as described in commonly assigned U.S. Pat. Nos. 3,928,026 to Hecht et al and 4,585,481 to Gupta et al. Overlay coatings are distinguished from diffusion coatings in that overlay coatings are discrete layers upon the substrate surface, and there is little or no chemical diffusion between the coating and the substrate. In contrast, diffusion coatings are (as their name implies) diffused with the substrate. Sputtered coatings are generally considered to be of the overlay type; see, e.g., U.S. Pat. No. 4,090,941 to Wright et al. Sputtered coatings have, however, not yet met their full potential in the gas turbine engine industry due, in part, to the inability to deposit coating compositions having the necessary combination of resistance to oxidation and fatigue degradation. This invention seeks to fill that need.